eMeg’s Hefty Bag & Fun with Stocks and Money

Calbuzz
3:01 AM ET, 10/ 7/2010

Team Whitman, trying desperately to dig eMeg out of the hole she carved into her campaign with her handling of Nicky Diaz, her undocumented housekeeper for nine years, sought to change the subject Wednesday by quoting ex-Republican congressman Michael Oxley of Ohio as saying he’s “outraged” that Jerry Brown used his name in an anti-Whitman TV ad.

But (as you’ll read below) Oxley called “corrupt” the practice of “stock-spinning” that Whitman engaged in when she was CEO at eBay and he included her in his attack on the practice. So the effort to shift the conversation away from eMeg’s character deficit, as raised by her handling of her illegal housekeeper, fell flat.

Which leaves loud-mouth attorney Gloria Allred with the last word — for now, anyway — on the hiring and firing of her client, Diaz. Who says eMeg treated her “like garbage” — a comment Calbuzz editorial cartoonist Tom Meyer could not resist vamping on.

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The generations of Cesar: Not willing to let go of Whitman’s handling of Diaz or the immigration issue just yet, Brown’s labor cronies in the Service Employees International Union put together a spot, as part of their $5 million independent expenditure drive, featuring Dr. Christina Chavez, grand-niece of Cesar Chavez.

“When Jerry Brown was governor, he fought alongside my uncle Cesar Chavez to garner fair wages for workers,” Dr. Chavez says in Spanish. “And help open the doors for a generation of Latinos to gain access to education and be successful.

“I know because I am one of them. Now Republican Meg Whitman wants to ban undocumented students from attending college, taking away their opportunity to succeed. That’s why we need to vote for Jerry Brown for Governor, to make sure everyone has a right to a good education and better future.”

Whitman teed up the issue of keeping undocumented Latinos out of state colleges and universities herself at the Univision debate on Saturday. She responded to a question from an honors student and — being true to her platform –bravely told the young woman she was taking up a spot in a state school that rightfully belonged to a legal California citizen.

What did he say and when did he say it: Rising to the defense of eMeg, retired Congressman Oxley on Wednesday said:

I am outraged that Jerry Brown would stoop so low as to use my name and comments to attack Meg Whitman . . . My comments were taken out of context and never directed at Meg or any other individual . . . Jerry Brown has desperately resorted to using lies, distortions and distractions to prevent a real discussion of the issues facing California.

Wow, strong stuff. Except, here’s the problem: In a wide-ranging investigation, involving five minutes using the Google, Calbuzz found numerous MSM stories, including articles from the New York Times and Wall Street Journal, where, as the investigative journalism group California Watch, summarized:

Then-Rep. Michael Oxley, an Ohio Republican who investigated the spinning scandal as chair of the House Financial Services Committee, said in 2002 that it was obvious that Goldman was “making IPO shares available to those with investment banking business to offer.” He said Whitman and 20 other corporate executives, including Kenneth Lay of Enron, received IPOs as “an inducement or reward for investment banking business.”

Oxley called the practice “corrupt.” Months later, it was banned by the SEC.

The Wall Street Journal even published this handy little chart, put together by Oxley’s committee.

We’re just sayin’.

Fun with numbers: New campaign finance reports show that Whitman has picked up the pace of her round-the-clock spending rate since her last filing and has now lavished a 24/7 average of nearly $10,000 an hour since announcing her candidacy in February 2009.

eMeg’s total of $140 million through September 30 works out to $234,113 per day, for each of the 598 days she’s been campaigning (Memo to Meg from Griff: Should we have set aside some to pay Nicky’s mileage?), or $9,754.70 per hour; for those keeping score at home, this is a considerably brisker clip than she was maintaining in the earlier report, when she was only spending $203,767 per day, or $8,490.29 an hour.

But Our Meg is going to have to hustle between now and election day to break the magic $10K per hour barrier, which will require her to spend $303,030 a day – $12,626 an hour – to hit her number.

And you know the best thing about it? She’s doing itall for us, because she just won’t let California fail.

Add Meg money: Interesting take by Michael Mishak and Patrick McGreevy of the By God Los Angeles Times , who report that despite the unprecedented $119 million eMeg has forked out of her own pocket, she’s actually outraised Krusty in outside contributions, $10.7 to $9.5 million.

The several millions of Whitman’s outside fundraising from “donors with business before the state and corporate leaders,” the Timesmen smartly note, are “potentially undercutting her claim that her personal fortune makes her uniquely free of special-interest entanglements.”

Krusty meanwhile has so far spent about $11 million to date, a mere $40,393 a day – $1,683 an hour – if you date the start of his campaign to the beginning of this year.

He has about $22 million in the bank, compared to Meg’s $9.2 million, which would be a considerable advantage in any other year, but which doesn’t mean squat when Herself can just hit the drive-through ATM to pick up a couple of large any old time she runs low on pocket change.

With her public image sagging (even in her own, best case poll, Meg’s favorables are only even with her unfavorables) Team Whitman has rolled out a new positive ad that’s pretty good: “They say California can’t be governed anymore,” Whitman says, full face to the camera, “I say baloney.”

It’s one of the few ads in which she’s looked animated and authentic and, in the wake of the housekeeper, it’s a damn fine idea to be putting it out there; of course, we have no way of knowing how much it’s running in rotation with her negative spots, including a new attack on Gandalf, which is just another iteration of the big spending liberal line of attack the Armies of eMeg have been pushing for months, to little obvious effect.

Don’t take it from us: even the venerable Republican analyst Tony Quinn thinks Meg’s arguing the wrong case on economics. In a strong but little-noticed piece on Fox and Hounds a few weeks ago, Quinn wrote:

Meg Whitman is getting it wrong. Her attacks on Jerry Brown are sporadic, unfocused and in many cases just downright untrue. She is trying to define him as a traditional tax and spend liberal, but that dog won’t hunt…

In fact, Brown hoarded his big surplus and refused to spend it on property tax relief. This set off the 1978 tax revolt culminating in Proposition 13. But he also refused to spend it on roads, water projects, better schools – or anything associated with California’s population growth.

Whitman is in danger of missing the bigger picture of Jerry Brown’s years as governor, for it is Brown that began California’s long decline into the economic basket case we are today….

Small is beautiful, lower your expectations replaced the dream of a better life. Well, now we know, small is not beautiful, small is small. Expectations are certainly lowered for the millions who cannot find a job in a state that once led the world in economic growth…

Instead of mounting that more sophisticated and historically accurate case against Brown, however, eMeg’s Empire keeps playing the same old, generic Republican one-note symphony, in between puffing up with overdone outrage about every feature story about Brown that comes along.

Can it possibly be that the candidate is running her own campaign?

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About Calbuzz

Calbuzz is the creation of Jerry Roberts and Phil Trounstine, former political editors of the San Francisco Chronicle, and the San Jose Mercury News. They have covered California politics for more than 60 years. One of the most influential forces in the state, Calbuzz is insightful, sharp, fair and funny.
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